Butler Lumber Company

Balance Sheet
Dec. 1988 Dec. 1989 Dec. 1990 Assumptions
ASSETS
Cash 58 48 41 1.52%
Accounts receivable, net 171 222 317 12%
Inventory 239 326 418 16%
CURRENT ASSETS 468 596 776
Property, net 126 140 157 6%
TOTAL ASSETS 594 736 933

LIABILITIES AND NET WORTH

Notes payable, bank 146 233
Notes payable, Mr. Stark 105
Notes payable, trade
Accounts payable 124 192 256 10.00
Accrued expenses 24 30 39 1%
Long-term debt, current portion 7 7 7
CURRENT LIABILITIES 260 375 535
Long-term debt 64 57 50
TOTAL LIABILITIES 324 432 585
Net worth 270 304 348
TOTAL LIABILITIES AND NET WORTH 594 736 933

Income Statement

Sales 1697 2013 2694 3600

Cost of goods sold
Beginning inventory 183 239 326
Purchases 1278 1524 2042 76%
1461 1763 2368
Ending inventory 239 326 418
Total cost of goods sold 1222 1437 1950 72%
Gross profit 475 576 744
Operating expenses 425 515 658 24%
Operating income 50 61 86
Plus: Purchase discount 2%
Less: Interest expense 13 20 33 10.50%
Net income before taxes 37 41 53
Provision for income taxes 6 7 9
Net income 31 34 44

a/ Average
Purchases/sales 75% 76% 76% 76%

Purchases 1991 - Q1 of 1991 2062

Provision for income taxes 15% 0 to 50000

25% 50000 to 75000
35% 75000 +
Assets - Liabilties (without the Bank note) - Net worth 641

Net Income 81
Projected Dec. 1991

54.79
424
559
1037
210
1247

641
0 Assumption
0 Assumption
75
52
7
775
43
818
429
1247

3600

418
2722
3140
559
2606
994
879
115
41
52
105
24
81
Butler Lumber Company

Balance Sheet
Funds Flow between 1988 and 1990
ASSETS
Cash -17
Accounts receivable, net 146
Inventory 179
CURRENT ASSETS 308
Property, net 31
TOTAL ASSETS 339

LIABILITIES AND NET WORTH

Notes payable, bank 233
Notes payable, Mr. Stark -105
Notes payable, trade 0
Accounts payable 132
Accrued expenses 15
Long-term debt, current portion 0
CURRENT LIABILITIES 275
Long-term debt -14
TOTAL LIABILITIES 261
Net worth 78
TOTAL LIABILITIES AND NET WORTH 339
Funds Flow Statement

APPLICATIONS SOURCES
Increase in Accounts Receivables 146 Decrease in Cash 17
Increase in Inv. 179 Notes payable, bank 233
Increase in Property 31 Increase in Accounts payable 132
Notes payable, Mr. Starck 105 Increase in Accrued Expenses 15
Decrease in LT debt 14 Increase in Net worth 78
TOTAL APPLICATIONS 475 TOTAL SOURCES 475